New U.S. curbs threaten Huawei's smartphone crown and hit suppliers

Ramped-up restrictions on Huawei are likely to choke the Chinese company's access to even off-the-shelf chips, threaten its crown as the world's largest smartphone maker and disrupt global tech supply, executives and experts warned.

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But there are likely to be some winners in the longer term if Huawei is forced to relinquish its spot as the world’s largest smartphone maker. “Huawei currently has 45-50% market share in China and, if this becomes vulnerable, Xiaomi, along with Oppo and Vivo, are likely to be the biggest beneficiaries,” JP Morgan analyst Gokul Hariharan said, referring to Chinese smartphone makers. “Huawei would also be likely to lose further ground in the international smartphone space and 5G base stations, both of which could benefit Samsung.

SHANGHAI/SEOUL (Reuters) – Ramped-up U. S. restrictions on Huawei are likely to choke the Chinese company’s access to even off-the-shelf chips, threaten its crown as the world’s largest smartphone maker and disrupt global tech supply, executives and experts warned.

The Trump administration expanded its curbs on Huawei on Monday and banned suppliers from selling chips made using U. S. technology to the firm without a special license – closing potential loopholes in its May sanctions that could have let Huawei access the tech via third parties.

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